"We don't believe our current market value reflects the digital assets we hold, cash position and underlying business," CEO Nangeng Zhang said Tuesday. Canaan has greenlit the sale of portions of its Bitcoin and Ethereum treasury to fund a $30 million share repurchase program, betting that its stock trades at a deep discount to its actual asset value. The Bitcoin miner held 1,915 BTC and 3,952 ETH at the end of June, worth roughly $130 million based on August 3 prices. Its market cap, Zhang argued, sits below that figure plus its cash reserves combined, making buybacks the rational move.
The authorization lets management monetize crypto to repurchase American depositary shares over the next 12 months. Timing and amounts will flex with share price, market conditions, and working capital needs, all subject to board oversight. Canaan produced 64 BTC in June and added 49 coins to its stash from the prior month, generating enough mining output to fund buybacks without gutting its balance sheet. The company's mining hardware operations keep the treasury topped up even as it converts older holdings into equity support. Shares jumped 9% on the news Tuesday, suggesting investors bought the thesis that the stock was undervalued relative to assets.
This repricing bet reflects a broader pattern where crypto-heavy companies trade at a discount to the fair value of their holdings. Canaan's move mirrors what Galaxy Digital and other mining operators have done, using strong balance sheets to reward shareholders when public markets punish valuations. The $30 million authorization, first renewed in December 2025, expires this December and doesn't require Canaan to use the full amount. Whether Zhang's timing proves prescient depends on whether the stock continues to lag its intrinsic asset value or whether the buybacks themselves attract enough fresh demand to close the gap.
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